North Carolina Truck Insurance Policy Information

North Carolina Truck Insurance. Truckers transport cargo from its initial loading and pickup at the shipper's location to final delivery and unloading at the receiver's location. The cargo can include raw materials, work in process, and finished goods. The trucker may assist customers in the packing and unpacking of freight. Many trucking companies have warehouse facilities for both temporary and long-term storage of customers' goods. While some truckers transport freight to the same destinations over and over, others transport single shipments to a particular destination. The trucking industry is regulated by a number of federal agencies.

Whether your business owns a single truck or 100 trucks, commercial truck insurance that matches your particular risks and the perils your drivers face on the roadway is important to the success of your business.

Maybe you have just one commercial truck that is used for deliveries, or perhaps you have an entire fleet of trucks that deliver freight throughout the country.

Either way, your insurance needs for NC commercial trucking are unique, and your coverage should reflect just that.

Truckers transport cargo from its initial loading and pickup at the shipper's location to final delivery and unloading at the receiver's location. The cargo can include raw materials, work in process, and finished goods. The trucker may assist customers in the packing and unpacking of freight. Many trucking companies have warehouse facilities for both temporary and long-term storage of customers' goods. While some truckers transport freight to the same destinations over and over, others transport single shipments to a particular destination. The trucking industry is regulated by a number of federal agencies.

North Carolina truck insurance protects your commercial trucking business from lawsuits with rates as low as $217/mo. Get a fast quote and your proof of insurance now.

North Carolina Truck Insurance

Commercial trucking can be dangerous. Around 130,000 people are injured annually in accidents involving commercial trucks. Around 70 percent of accidents result in property damage only, while approximately 22 percent of truck accidents involve ideuries to others on the road or the drivers of the trucks. Regardless, accidents in commercial trucks in NC can be expensive, with the average payout for a commercial truck accident adding up to an average of $59,000. North Carolina truck insurance can deflect those costs from you to the insurance company.

If you own large commercial trucks - including dump trucks, auto trailers, car haulers, garbage trucks, box trucks, tank trucks, flatbed trucks, and tow trucks - you need to make sure that the North Carolina truck insurance you purchase for your trucks is adequate enough to cover your liability so as to limit loss in the event of a covered peril. While each of these truck types has a different job, the risk you face is a constant one. The amount of time the truck is on the road, the employees that drive the truck, the number of miles logged annually, and the freight being hauled all factor into how much you will pay for the insurance you buy.

Insuring Your Commercial Truck

Like most commercial auto products, NC commercial truck coverage is available in a number of iterations. Each iteration is designed with the specific goal of protecting the owner of the policy from loss. Some types to consider include:

Liability insurance. While most states require that owners of commercial vehicles maintain liability insurance, the minium level of coverage in NC is $30,000/$60,000. However, you should purchase the maximum amount of liability coverage you can afford. This insurance mitigates the risks that you face if you or someone driving your truck is found to have caused an accident. This type of policy usually covers bodily injury to other parties, property damaged during an accident, and the costs of defending the claim in court.

Physical damage coverage. The cost of repairing a vehicle involved in an accident can be exorbitant, but this type of coverage handles the repair costs up to your specified policy limits. While collision coverage pays for damages due to colliding with another vehicle or object, comprehensive coverage pays for non-collision damages. For example, a truck that's damaged when the wind blows it over.

Uninsured/underinsured motorist coverage. If you are involved in an accident with another vehicle that lacks adequate coverage to pay for repairs or that has no insurance at all, this coverage takes the place of the other party's insurance.

Cargo coverage. Theft or damage of the freight you haul is covered by this type of policy.

Risks & Exposures For NC Truckers

Commercial auto exposure is written on a motor carriers' policy. The exposure is very high because it includes loading and unloading of freight. There is considerable opportunity for contact with the client, who can be injured should the movers drop or overturn items being carried. Children may be present during loading or unloading operations at residences or schools, requiring additional caution. All drivers must have training in lifting and handling of items being carried.

They must have a valid commercial driver's license (CDL) for the trucks being driven and the cargo being moved. MVRs must be acceptable and checked regularly. Manipulating a large semi-trailer rig in a residential or commercial area requires training and awareness of surroundings. All drivers must be well trained and attend continuing education courses to maintain and improve skill levels. Driving logs must be maintained, and drivers must not be permitted to exceed regulatory limits on their hours of service. Random drug and alcohol testing should be required. Vehicles must be maintained and records should be kept in a central location. Accidents can result in the spillage of diesel fuel or other operating fluids from within the truck, requiring cleanup.

Property exposure can be high if the risk repairs, refuels and maintains its own vehicles on premises. Exposures include flammable liquids, including gasoline and diesel fuel, and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion. All spray-painting should be conducted in a spray booth with approved fixtures.

The condition and controls of fuel tanks, whether above or below ground, are important for both property and environmental liability. Fire hazards can arise from the combustibility of items stored for customers. There must be adequate aisle space to allow firefighters to carry out their duties. If items in storage include any flammables or ignition sources, they must be properly controlled. As stored items are attractive targets for theft, there should be appropriate security including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.

Crime exposure is from employee dishonesty and from money and securities. Background checks, including criminal history, should be performed on all employees handling money. Trucking operations involve a number of transactions and accounts that can be manipulated. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements and reconciling bank statements. Regular internal and external audits should be conducted. As drivers, loaders and unloaders have access to customers' premises, the exposure to theft of customer property or customer identity theft increases.

Inland marine exposure is from accounts receivable, computers, motor truck cargo, valuable papers and records, and warehouse operators' legal liability. Customers' property may be damaged while being transported due to overturn, collision, or theft. Cargo containers should have locks and appropriate alarm systems. Most truckers are subject to minimum cargo legal liability requirements.

The bill of lading spells out the terms of the agreement that must be honored. Insurance coverage will vary, but may exceed these minimums if customer satisfaction is important to the trucker. Any items in storage must be marked to prevent incorrect release. Records should be duplicated and be stored off site.

Premise liability exposure is extremely low due to limited public access to the premises. Cargo containers stored outside may present an attractive nuisance to minors. Fencing and lighting help reduce this exposure. Most off premises exposures relate directly to truck operations, such as loading and unloading, and are covered under the motor carriers' liability policy. Contracts may expose the operation to additional liability.

Environmental impairment exposure can be high due to underground fuel tanks and waste disposal of fluids used for servicing and repairing trucks. All underground fuel tanks must meet state or federal regulations and be routinely tested for leakage. Contracts should be in place to dispose of all environmentally dangerous chemicals. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing trucks.

Workers compensation exposure comes from driving, loading and unloading customers' goods, and repair and maintenance activities. Drivers must operate in adverse traffic conditions such as inclement weather or road construction. They must be monitored to ensure that an appropriate amount of time is allocated for sleep. The operations of unloading and unloading have a very high potential for all forms of back injury, hernia, sprain, and strain losses from loading, unloading, and warehouse operations.

The training, material handling devices, and equipment are important to review. Garage employees can be injured by vehicles falling from hoists, strains, sprains and other lifting injuries. Good housekeeping is critical to reduce injury from slips, trips, and falls. Burns, eye injuries, and respiratory problems can occur with the welding and painting. Dermatitis can result from employees coming into contact with harsh cleaning detergents. Repair areas should be properly ventilated. Proper safety equipment is required. If independent owner-operators are used, responsibility for workers compensation coverage must be specified by contract.

Commercial Truck Classificaton

Commercial trucks are classified according to the Gross vehicle weight rating (GVWR). The United States Department of Transportation (USDOT) classifies NC commercial trucks with eight classes:

Getting Quotes for Commercial Truck Insurance

Because North Carolina truck insurance for your commercial truck can be as varied as your individual business, it can be hard to get multiple quotes for coverage. Following are common classes for NC commercial truck insurance:

Box trucks

Semi trucks

Flatbed trucks

Front loaders

Garbage trucks

Pickup trucks

Tank trucks

Tractors

Dump trucks

Auto hauler trailers

Flatbed trailers

And many more...

Working with an agent who is adept at deciphering the legalities of NC commercial insurance can help. The agent can analyze the way that you use your vehicle and gain understanding of your business to determine the right policy for your specific situation.

A variety of factors influence your rates. Your credit history and your business' credit rating are important when determining how much insurance will cost. Insurance companies also look at the make, model, and year of your trucks, the number of trucks you have on the road, any accidents that your business has been involved in, how far your trucks journey away from home, and how often they are driven.

Your agent will need to know a few specifics about your business, your drivers, and your typical cargo to get you the best North Carolina truck insurance quote. Some questions you may need to answer:

Does your truck cross state lines?

Where will your truck be garaged?

What do you haul?

Will you haul hazardous materials or heavy equipment?

Are your driver's certified?

Is your truck financed?

Using your answers and analyzing your driving record and the driving histories of your employees can help the agent to determine which options suit you best. A local agent is a good place to start looking for the necessary North Carolina truck insurance coverage you need to mitigate your risks as a commercial commercial truck owner.

NC Trucker's Risks & Exposures

Commercial auto exposure is written on a motor carriers' policy. The exposure is very high because it includes loading and unloading of freight. There is considerable opportunity for contact with the client, who can be injured should the movers drop or overturn items being carried.

Children may be present during loading or unloading operations at residences or schools, requiring additional caution. All drivers must have training in lifting and handling of items being carried. They must have a valid commercial driver's license (CDL) for the trucks being driven and the cargo being moved. MVRs must be acceptable and checked regularly. Manipulating a large semi-trailer rig in a residential or commercial area requires training and awareness of surroundings.

All drivers must be well trained and attend continuing education courses to maintain and improve skill levels. Driving logs must be maintained, and drivers must not be permitted to exceed regulatory limits on their hours of service. Random drug and alcohol testing should be required. Vehicles must be maintained and records should be kept in a central location. Accidents can result in the spillage of diesel fuel or other operating fluids from within the truck, requiring cleanup.

Property exposure can be high if the risk repairs, refuels and maintains its own vehicles on premises. Exposures include flammable liquids, including gasoline and diesel fuel, and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion. All spray-painting should be conducted in a spray booth with approved fixtures.

The condition and controls of fuel tanks, whether above or below ground, are important for both property and environmental liability. Fire hazards can arise from the combustibility of items stored for customers. There must be adequate aisle space to allow firefighters to carry out their duties. If items in storage include any flammables or ignition sources, they must be properly controlled. As stored items are attractive targets for theft, there should be appropriate security including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.

Crime exposure is from employee dishonesty and from money and securities. Background checks, including criminal history, should be performed on all employees handling money. Trucking operations involve a number of transactions and accounts that can be manipulated. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements and reconciling bank statements. Regular internal and external audits should be conducted. As drivers, loaders and unloaders have access to customers' premises, the exposure to theft of customer property or customer identity theft increases.

Inland marine exposure is from accounts receivable, computers, motor truck cargo, valuable papers and records, and warehouse operators' legal liability. Customers' property may be damaged while being transported due to overturn, collision, or theft. Cargo containers should have locks and appropriate alarm systems. Most truckers are subject to minimum cargo legal liability requirements. The bill of lading spells out the terms of the agreement that must be honored. Insurance coverage will vary, but may exceed these minimums if customer satisfaction is important to the trucker. Any items in storage must be marked to prevent incorrect release. Records should be duplicated and be stored off site.

Premise liability exposure is extremely low due to limited public access to the premises. Cargo containers stored outside may present an attractive nuisance to minors. Fencing and lighting help reduce this exposure. Most off premises exposures relate directly to truck operations, such as loading and unloading, and are covered under the motor carriers' liability policy. Contracts may expose the operation to additional liability.

Environmental impairment exposure can be high due to underground fuel tanks and waste disposal of fluids used for servicing and repairing trucks. All underground fuel tanks must meet state or federal regulations and be routinely tested for leakage. Contracts should be in place to dispose of all environmentally dangerous chemicals. Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing trucks.

Workers compensation exposure comes from driving, loading and unloading customers' goods, and repair and maintenance activities. Drivers must operate in adverse traffic conditions such as inclement weather or road construction. They must be monitored to ensure that an appropriate amount of time is allocated for sleep.

The operations of unloading and unloading have a very high potential for all forms of back injury, hernia, sprain, and strain losses from loading, unloading, and warehouse operations. The training, material handling devices, and equipment are important to review.

Garage employees can be injured by vehicles falling from hoists, strains, sprains and other lifting injuries. Good housekeeping is critical to reduce injury from slips, trips, and falls. Burns, eye injuries, and respiratory problems can occur with the welding and painting. Dermatitis can result from employees coming into contact with harsh cleaning detergents.

Repair areas should be properly ventilated. Proper safety equipment is required. If independent owner-operators are used, responsibility for workers compensation coverage must be specified by contract.

Insurance Classification Of Truckers

Insurers classify trucking businesses using several coding systems. You can wind up paying more for your insurance if your trucking company is not properly classified - like a general freight carrier being coded as a hazmat carrier. Below are the three most commonly used coding systems for truckers insurance:

Truckers SIC Code Descriptions

4212 Local Trucking Without Storage

Establishments primarily engaged in furnishing trucking or transfer services without storage for freight generally weighing more than 100 pounds, in a single municipality, contiguous municipalities, or a municipality and its suburban areas. Establishments primarily engaged in furnishing local courier services for letters, parcels, and packages generally weighing less than 100 pounds are classified in Industry 4215; those engaged in collecting and disposing of refuse by processing or destruction of materials are classified in Industry 4953; those engaged in removing overburden from mines or quarries are classified in Division B, Mining; and construction contractors hauling dirt and rock as a part of their construction activity are classified in Division C, Construction.

Baggage transfer

Carting, by truck or horse drawn wagon

Debris removal, local carting only

Draying, local: without storage

Farm to market hauling

Furniture moving, local: without storage

Garbage, local collecting and transporting: without disposal

Hauling live animals, local

Hauling, by dump truck

Local trucking, without storage

Log trucking

Mail carriers, bulk, contract: local

Refuse, local collecting and transporting: without disposal

Rental of trucks with drivers

Safe moving, local

Star routes, local

Truck rental for local use, with drivers

Trucking timber

4213 Trucking, Except Local

Establishments primarily engaged in furnishing "over-the-road" trucking services or trucking services and storage services, including household goods either as common carriers or under special or individual contracts or agreements, for freight generally weighing more than 100 pounds. Such operations are principally outside a single municipality, outside one group of contiguous municipalities, or outside a single municipality and its suburban areas. Establishments primarily engaged in furnishing air courier services for individually addressed letters, parcels, and packages generally weighing less than 100 pounds are classified in Industry 4513 and other courier services for individually addressed letters, parcels, and packages generally weighing less than 100 pounds are classified in Industry 4215.

Long-distance trucking

Over-the-road trucking

Trucking rental with drivers, except for local use

Trucking, except local

4214 Local Trucking With Storage

Establishments primarily engaged in furnishing both trucking and storage services, including household goods, within a single municipality, contiguous municipalities, or a municipality and its suburban areas. Establishments primarily engaged in furnishing warehousing and storage of household goods when not combined with trucking are classified in Industry 4226. Establishments primarily engaged in furnishing local courier services for letters, parcels, and packages weighing less than 100 pounds are classified in Industry 4215.

For business-savvy individuals who are looking to establish operations for their corporation in North Carolina, having a firm understanding of the economic status of the state is essential. It's also crucial that business owners understand what the regulations and limitations for commercial insurance in the state. Below, we offer an overview of the economy and insurance requirements in the Tar Heel State.

For any business owner who is thinking about establishing a NC based organization, it's essential to first understand if the state is considered a healthy location for your enterprise. Before you set up shop, understanding key details that are related to the economy of the state, in addition to what type of commercial insurance is mandated is essential.

Economic Trends for Businesses In North Carolina

Job growth is promising in NC. Between 2017 and 2026, it is estimated that 389,000 jobs will be created within the state. In 2017, the unemployment rate within the state continued to fall at a steady rate; however, as of March, 2019, the state's unemployment rate rose 0.1 percent, a slight increase. Though the unemployment rate in North Carolina is slightly higher than the national average (0.2 percent higher), the forecast is positive, with rates holding steady in the coming years.

As of January, 2019, the unemployment rate did increase in all 100 North Carolina Counties; however, the rate is still lower than it was during the early 2000s. With an unemployment rate of 3.6 percent, Asheville had the best labor market in January, 2019, while in Rocky Mount, the rate was 6.0 percent, the highest in the state.

It is predicted that the following industries will contribute the most to NC's labor market through the year 2026:

Aerospace and Defense

Automotive

Biotechnology and Pharmaceuticals

Business and Financial Services

Computer- and Mathematics-related occupations

Food Processing and Manufacturing

Furniture Production and Sales

Health Care and Social Assistance

Outdoor Recreation

Plastics and Chemicals

Professional, Scientific, and Technical Services

Textiles

Commercial Insurance Regulations and Limits in North Carolina

Every industry is required to comply with state-mandated commercial insurance regulations in the state of North Carolina. According to state law, all businesses that employ three or more workers must carry workers' compensation insurance. Businesses that rely on vehicles for their operations must also carry commercial automobile coverage. Organizations that operate in areas that are prone to flooding must also carry commercial flood insurance. Additional forms of coverage may be required, as well, depending on the specific industry that a business operates under.

Additional Resources For Commercial Auto Insurance

Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.

The person injured in an vehicle accident may be a child, a wage earning single parent, a brain surgeon, or even a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs?

Trucking operations in this chapter are among the most heavily regulated in the country. All are subject to multiple types of regulation including municipal, state and federal. The regulations are necessary because potential for severe property damage and/or bodily injury is extremely high.

All carry cargo that if not handled appropriately could have serious consequences to the cargo owner and/or the public at large. Those that carry people must prove that they keep their equipment in good condition and that employees operate in a safe, sober manner.

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage and certain types of pollution events covered by this insurance caused by an accident and resulting from ownership, maintenance or use of covered vehicles.

The obligation to pay is triggered only by accidental occurrences involving vehicles covered under the Business Auto Coverage Form. An eligible pollution event is covered only if it is connected to a covered bodily injury or property damage loss.

It is important that you have the proper Limit of Insurance to protect your operations. This limit is the most the insurance company pays for the total of all damages, including any covered pollution cost or expense resulting from any one covered accident, is the Covered Auto liability limit of insurance on the declarations.

This limit applies regardless of the number of insureds, autos covered, vehicles involved in an accident, premium paid, or number of claims made.

Also learn about North Carolina small business insurance requirements for general liability, business property, commercial auto & workers compensation including NC business insurance costs. Call us(704) 703-1413.

Federal Motor Carrier Safety Administration Information

Safer System - The FMCSA Safety and Fitness Electronic Records (SAFER) System offers company safety data and related services to industry and the public over the Internet. Users can search FMCSA databases, register for a USDOT number, pay fines online, order company safety profiles, challenge FMCSA data using the DataQs system, access the Hazardous Material Route registry, obtain National Crash and Out of Service rates for Hazmat Permit Registration, get printable registration forms and find information about other FMCSA Information Systems.

How does CSA work? - CSA (Compliance - Safety - Accountability) re-engineers the former enforcement and compliance process to provide a better view into how well large commercial motor vehicle carriers and drivers are complying with safety rules, and to intervene earlier with those who are not.

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Disclaimer

The commercial insurance content available on this page is for informational purposes only and not for the purpose of providing legal or financial advice.

General Liability Insure does not warrant or make any representations regarding the usefulness of or the expected results of the material contained on this website. You should contact your attorney, accountant and/or financial adviser to obtain advice with respect to any particular commercial insurance question, claim or issue.